Sludge Explained | 60 Second Enrichment Economics
Skills:
Data Literacy50%
Key Takeaways
Explains the concept of sludge in economics and its impact on consumer welfare
Original Description
Sludge is the hidden friction that makes simple decisions unnecessarily difficult. From frustrating subscription cancellations and drip pricing to confusing cookie consent forms, firms can exploit consumer inertia to boost profits. While these barriers may seem minor, they reduce consumer welfare, distort choices, and highlight how behavioural economics shapes everyday decisions in subtle but powerful ways.
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